Medallion prepares Cosmic Boy for first gold with $175 million liquidity

Ravensthorpe enters construction phase

Medallion Metals Limited (ASX:MM8) has crossed an important threshold at its Ravensthorpe Gold Project, securing final regulatory approvals and beginning mine development at the Kundip Mining Centre. Civil works have started on site preparation, access roads and surface infrastructure, with box-cut excavation and underground development next in the sequence.

Macmahon was selected as preferred underground mining contractor for work valued at approximately $240 million over three years, with mobilisation expected in the fourth quarter of calendar 2026. The report describes Macmahon as the preferred tenderer rather than confirming a fully executed contract, leaving contract finalisation and the pace of underground development among the near-term execution markers.

The development push is being financed from a materially stronger balance sheet. Medallion completed a $60 million institutional placement of 125 million shares at $0.48 each, following the $60 million August placement. Cash stood at $97.0 million at 30 September, while the company reported approximately $175 million in available liquidity including existing cash and funding facilities.

Cosmic Boy refurbishment moves into main works

At Forrestania, the Cosmic Boy Concentrator refurbishment has progressed from early works into its main construction phase after GR Engineering Services received the EPC contract. The programme was approximately 30% complete by mid-September, surface earthworks for the expanded plant had been completed, and refurbishment of existing infrastructure was under way.

The new secondary ball mill, a key modification for processing Ravensthorpe sulphide ore, arrived at Fremantle in September and reached site in early October. The modified concentrator is designed to process 650,000 tonnes per year of Ravensthorpe sulphide ore, with commissioning on Kundip ore targeted for the second quarter of calendar 2027 and steady-state production forecast for the second half of that year. The construction plan follows the Cosmic Boy EPC contract, which earlier coverage reported was valued at $50 million.

Before Ravensthorpe ore arrives, Medallion is pursuing an Early Production Strategy based on third-party material. The company has signed a toll-processing agreement covering at least 200,000 tonnes, cleared the existing run-of-mine pad and begun deliveries of gold-bearing material. Carbon-in-column tanks were installed after quarter end and crushing-circuit commissioning occurred in October, with gold processing targeted for the month.

Drilling points to further resource growth

Exploration added a second strand to the quarter’s development story. At Gem, high-grade drilling extended mineralisation eastwards and at depth, with the deposit remaining open down plunge. Reported intersections included 4.92 metres at 15.5 grams per tonne gold, including 0.30 metres at 204.0 grams per tonne, while Harbour View drilling extended the known mineralised structure beyond 400 metres below surface.

At Forrestania’s Lounge Lizard deposit, seven reverse-circulation holes at McMahon’s pit extended mineralisation down dip and down plunge and identified a new hangingwall lode. Selected historical diamond-core intervals returned grades about 20% higher on re-assay, and a further 3,000-metre diamond programme has begun to support an initial Mineral Resource Estimate and test additional feed for Cosmic Boy.

Cash burn rises as production approaches

The September quarter cash flow report shows the cost of moving into development. Net operating cash outflow was $10.899 million, with $5.783 million spent on development, $3.103 million on exploration and evaluation, and $3.109 million on care and maintenance. Financing inflows, including the placement and $341,000 from option exercises, left cash at $96.981 million after $3.158 million of equity-issue costs.

There was no mining production during the quarter. That makes the October processing target an operational milestone rather than evidence of established production: the company still has to commission the third-party feed circuit, advance the Cosmic Boy works, execute the Kundip underground plan and convert exploration results into updated resources. The December quarter is therefore set to test whether Medallion can turn a well-funded construction programme into repeatable gold output.